Comtech Telecommunications Corp. (CMTL) AI Stock Analysis

Comtech Telecommunications Corp. designs, develops, produces, and markets communication solutions in the United States and internationally across two primary segments: Commercial Solutions and Government Solutions. Commercial Solutions delivers satellite ground station technologies, such as modems, amplifiers, frequency converters, and network software, alongside 911 call handling and mapping solutions for emergency services. Government Solutions provides tactical satellite networks, ruggedized routers, solid-state drives, and sustainment services. This segment also supplies high-performance transmission technologies for electronic warfare, radar, identification friend or foe systems, troposcatter technologies, and high-power radio frequency microwave amplifiers.

Comtech reported FY2026 revenue of $249.6M, falling 50.0% from $499.5M in FY2025 and contributing to a 5-year revenue CAGR of -15.6%. Net income improved to -$36.2M compared to -$155.3M in FY2025, while gross margin expanded to 38.9% from 25.6%. Operating margin remained negative at -7.3% in FY2026, though this was an improvement from -27.8% in FY2025. In the latest quarter ending July 31, 2026, quarterly revenue decreased 16.4% year-over-year, while quarterly earnings growth rose 587.0%. For the trailing twelve months, the company recorded an operating margin of -5.8%, a profit margin of -14.5%, and an eps of -$1.71.

As of July 31, 2026, Comtech held $35.0M in cash and short-term investments against total debt of $218.0M, resulting in net debt of $183.0M. The company ended the period with a current ratio of 0.84 and a debt-to-equity ratio of 0.84 on shareholders' equity of $260.9M. In FY2026, operating cash flow reached $37.4M, funding capital expenditures of $15.2M to deliver free cash flow of $22.2M. Dividends paid totaled $32,000, while share count increased 12.9% over five years.

Comtech closed at $1.39 on October 16, 2026, representing a 1-year return of -52.2% and a 5-year return of -94.0%, trailing the S&P 500 benchmark returns of 16.8% and 83.0%, respectively. The company carries a market capitalization of $41.6M and an enterprise value of $476.9M. It trades at a forward P/E of 5.3x and an EV/EBITDA of 8.5x, compared to medians of 18.8x and 16.6x for its US-listed Technology peers. Furthermore, Comtech's price-to-sales ratio stands at 0.2x versus the peer median of 2.8x.

Wall Street sentiment includes 2 Strong Buy ratings, 0 Buy, 0 Hold, 0 Sell, and 0 Strong Sell ratings. The mean price target of $3.62 implies 160.8% upside from the last close of $1.39. For the current fiscal year ending July 31, 2027, consensus estimates call for an EPS of -$0.56 and revenue of $270.5M. In the following fiscal year, 2 analysts project revenue of $382.2M, representing 41.3% growth, and an EPS of -$0.40. Comtech has delivered 4 EPS beats over the last 4 quarters, with its next earnings date scheduled for December 10, 2026.

This page is an AI-written research summary of Comtech Telecommunications Corp. (CMTL). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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